Correlation Between Onlineformapro and BEBO Health
Can any of the company-specific risk be diversified away by investing in both Onlineformapro and BEBO Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Onlineformapro and BEBO Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onlineformapro SA and BEBO Health SA, you can compare the effects of market volatilities on Onlineformapro and BEBO Health and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Onlineformapro with a short position of BEBO Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onlineformapro and BEBO Health.
Diversification Opportunities for Onlineformapro and BEBO Health
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Onlineformapro and BEBO is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Onlineformapro SA and BEBO Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEBO Health SA and Onlineformapro is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Onlineformapro SA are associated (or correlated) with BEBO Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEBO Health SA has no effect on the direction of Onlineformapro i.e., Onlineformapro and BEBO Health go up and down completely randomly.
Pair Corralation between Onlineformapro and BEBO Health
Assuming the 90 days trading horizon Onlineformapro SA is expected to generate 2.14 times more return on investment than BEBO Health. However, Onlineformapro is 2.14 times more volatile than BEBO Health SA. It trades about 0.06 of its potential returns per unit of risk. BEBO Health SA is currently generating about -0.07 per unit of risk. If you would invest 112.00 in Onlineformapro SA on August 26, 2024 and sell it today you would earn a total of 128.00 from holding Onlineformapro SA or generate 114.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.83% |
| Values | Daily Returns |
Onlineformapro SA vs. BEBO Health SA
Performance |
| Timeline |
| Onlineformapro SA |
| BEBO Health SA |
Onlineformapro and BEBO Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onlineformapro and BEBO Health
The main advantage of trading using opposite Onlineformapro and BEBO Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onlineformapro position performs unexpectedly, BEBO Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BEBO Health will offset losses from the drop in BEBO Health's long position.| Onlineformapro vs. Txcom SA | Onlineformapro vs. Poujoulat SA | Onlineformapro vs. Vente Unique | Onlineformapro vs. Moulinvest |
| BEBO Health vs. Groupe Partouche SA | BEBO Health vs. Gevelot | BEBO Health vs. Plastiques du Val | BEBO Health vs. Trilogiq |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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